Credit scores range from 300 to 850.
Poor credit scores can make it almost impossible to get ahead.
Repairing credit can be a long, slow, yet worthwhile road.
People don’t need a credit repair company to fix their scores; they can do it on their own.
(NewsReady.com) – One of the best pieces of financial advice any young adult can ever receive is to protect their credit score. That number is the way millions of companies and individuals measure how well someone is doing financially. A hundred points in either direction could be the difference between living in an apartment in a bad neighborhood and renting or buying a beautiful home. A low credit score could put a person in a position where they can’t even buy a vehicle. Even if they could, their interest rate might be outrageously high.
Not everyone is given that advice or taught how important credit scores are. When that happens, it could set them on a path to financial ruin. Fortunately, they can turn it around with a few tips.
Where Do You Stand
If you’re trying to repair your credit, you should first figure out how much money you owe. Use an app like Credit Karma or check the major credit bureaus individually to see if you have any delinquent payments. Write all of the information you find out about your financial state, including the phone numbers of debtors and get ready to start paying off some debt.
Pay Down Debt
Once you know what you owe, it’s time to start getting rid of the delinquencies and other debt. You want to pay the high-impact debt first when choosing what to pay down. Additionally, using an app like Credit Karma or Experian will tell you which debts hurt your scores the most.
If you have delinquencies, call the companies that hold those balances and negotiate settlements. Some companies might allow you to pay as little as half of the debt. If you have credit cards, start paying them down so your usage is under 30%.
Dispute Negative Marks
When you take stock of where you stand, it’s important to dispute any delinquent marks on your credit score that you think shouldn’t be on your report. Disputing a negative mark only takes a few moments, and can greatly raise your score if you win.
Create a Budget
You want to create a budget to ensure you’re spending your money smartly and won’t end up in a financial hole again. There are many online tools you can use for free to create a proper budget.
Just remember, rebuilding your credit score can take years in some cases, but it’s worth it in the end.
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